The Media Industry's Greatest Failures of the Past Two Decades

In this week39s subscriberonly Jack Myers Media Business Report I outlined the economic collapse of the newspaper industry that is leading its advertising revenues to decline from a 32 share of total ad spending in 2000 to only 75 in 2020It may be too late for newspaper publishers to reinvent their collapsing media empires And as we begin a new television season it39s not unreasonable to ask if the broadcast television medium is at its peak both as a content producer and as a distribution system Or is the industry reinventing itself as it has throughout its history By 2020 thousands of media companies including many of the largest and most prestigious will have disappeared from the landscape or undergone radical changes to their core business modelsWe are now two decades into a 30year transformation Mosaic was launched in 1993 away from the mass models of the Industrial Age and are accelerating into The Relationship Ageamp174 business models built on interpersonal and interactive relationships among discreet groups with common interests Media and advertising companies and marketers are just beginning to comprehend the dimensions implications and economics of this shift even though they have been readily apparent since the late 1990sThe media industry39s greatest failures over the past two decades have been an inability to effectively monetize quotmedia brandsquot a blindness to the power of interactivity as a tool for marketers a mindboggling adherence to a business model that has focused almost exclusively on investments in expanded media supply even though this invariably results in pricing erosion economic models that assume advertiser demand will continue to grow and that advertisers will blindly embrace technological quotbells and whistlesquot with no true measures of value or returnoninvestment a refusal to acknowledge that the trend toward free news information and entertainment is inexorable a failure to connect the dots between the Internet cheap content creation and distribution tools and an erosion of consumers39 need for and interest in traditional mediaWhile these truths are more generally accepted today than they were a decade ago only a few media and advertising companies are proactively responding to them and it remains to be seen whether they will be successful The sad truth is many will continue to ignore these realities and as a result their business models will erode and collapse in the near futureThe Relationship Age is a registered trademark of Jack MyersTo comment visit wwwjackmyersthinktankcom JackMyersThinkTank and MediaBizBloggers are free and underwritten as an industry service by corporate subscribers to Jack Myers Media Business Report For subscription information visit wwwmyersreportcom Visit the archives of JackMyersThinkTank and MediaBizBloggers Jack Myers can be contacted directly at jmjackmyerscom

Become a Thought Leader. Share your thought leadership article with industry professionals & have them archived in Thought Leadership

The Media Industry's Greatest Failures of the Past Two Decades

Author

Publish date

Channel

Jack Myers

"About That with Carl Mayer:" Alaina Donnellon (Episode 10: Political Spending) - By Carl Mayer

More Videos:

Become a Thought Leader. Share your thought leadership article with industry professionals & have them archived in Thought Leadership

The Media Industry's Greatest Failures of the Past Two Decades

Enjoying This Commentary? There's More to Love

Jack Myers

"About That with Carl Mayer:" Alaina Donnellon (Episode 10: Political Spending) - By Carl Mayer

The payment was successful

Cookies